Trade diplomats from the EU’s member states are to discuss tomorrow (18 December) whether to back a recommendation by the European Commission to suspend preferential trade terms for Sri Lanka because of its poor human-rights record. 

Sri Lankan exporters – mainly in the textile sector – could face tens of millions of euros in additional duties if the preferential terms, known as ‘GSP+’, are suspended. A suspension is likely, according to diplomats, and would take effect six months after a decision by member states, expected by February.

The GSP+ scheme gives 16 developing countries access to EU markets under preferential conditions in return for implementing international human-rights conventions. The Commission’s recommendation to suspend trade preferences for Sri Lanka, made on Tuesday (15 December), followed a Commission report published on 19 October. The report found “significant shortcomings” in Sri Lanka’s compliance with its obligations under the scheme.

Civil war

In May, Sri Lanka’s armed forces crushed a decades-old Tamil insurgency. The final phase of the civil war displaced 280,000 civilians, according to the government, the bulk of whom are still in temporary camps. Aid workers and reporters were denied access to the camps. Earlier this month, the government allowed the displaced to leave the camps temporarily to seek out relatives. The government says that the camps were necessary to make sure that no rebels were among the displaced and to begin de-mining the areas affected by the fighting.

On 26 January, Sri Lankans are to vote for a new president. General Sarath Fonseka, who led the army to victory in May, announced last month that he would challenge Mahinda Rajapaksa, the incumbent.